An influential 2015 McKinsey study claims a business case for racial and ethnic diversity in the corporate c-suite. Yet recent more comprehensive and rigorous evidence claims that government mandates to increase diversity actually negatively impact corporate financial performance.
The McKinsey study has significantly impacted investment policies of institutional investors, the Securities and Exchange Commission’s disclosure regulation regarding diversity of corporate board members, and NASDAQ’s listing requirement. Does the McKinsey study suffer from methodological deficiencies by which experts judge scientific empirical research in finance?
A recent paper would answer in the affirmative. Sanjai Bhagat joined us to examine both the McKinsey and subsequent studies.
Featuring:
Sanjai Bhagat, PhD, Professor of Finance, University of Colorado
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